Steve Ballmer’s Latest Investment and the NBA’s Investigation
In March 2023, Steve Ballmer, the owner of the Clippers, made a notable investment of about $10 million in a company linked to the team, as reported on Friday. This investment follows an earlier $50 million infusion he made 18 months prior, which triggered an investigation into the Clippers regarding potential salary cap violations involving star player Kawhi Leonard.
Interestingly, this was the first time details surfaced about a four-year, $28 million no-show deal that Leonard allegedly received, initially reported by Pablo Torre. Ballmer’s latest investment was made just three months after Clippers vice-president Dennis Wong contributed $1.99 million to the same cause.
Moreover, shortly after Wong’s investment, a financial technology firm reportedly paid Leonard $1.75 million. This payment adds another layer to the ongoing scrutiny surrounding the Clippers.
Ballmer’s original $50 million investment in December 2021 was part of a deal that made the Clippers a founding sponsor of their new arena, which, interestingly, followed a major contract exceeding $300 million. Leonard, now 34, had signed his four-year deal worth $28 million only seven months later, during a time when the team struggled with making payments to several star players.
The league’s commissioner, Adam Silver, confirmed that the NBA will be probing Ballmer, though he emphasized that penalties would only be considered if substantial evidence of wrongdoing is found. “I hesitate to act based just on appearances of fraud. The aim of a thorough investigation is to determine if actual fraud occurred,” Silver stated. He also expressed hope that all parties involved would be treated fairly throughout the process.
Amidst all this, Ballmer shared his personal involvement in the investment and the surrounding issues. He noted feeling “embarrassed and stupid” for trusting individuals who ultimately defrauded investors, highlighting the complexities that sometimes cloud even well-intentioned decisions. “I reviewed documents, and my team did as well. While I wish I had sensed something amiss, others didn’t either,” he admitted.
